Thailand’s Finance Ministry Introduces 5-Year Tax-Free Period for Cryptocurrency Trading – Will Investors Rush In?

Thailand Grants Full Tax Exemption on Crypto Gains Through 2029

Thailand is moving aggressively to make itself a more attractive destination for digital asset investors by offering a complete exemption from capital gains tax on cryptocurrency trades until 31 December 2029.

The measure, signed into regulation by Deputy Finance Minister Julapun Amornvivat, will take effect once published in the Royal Gazette and applies to trades conducted through platforms regulated by the Securities and Exchange Commission, including licensed exchanges, brokers, and dealers.

Julapun stated that the policy reflects Thailand’s “commitment to supporting regulated digital trading” while aiming to position the country as a hub for blockchain and fintech investment.

Officials say the exemption is designed to boost investor confidence and attract foreign capital, with the Finance Ministry projecting that indirect tax revenues could rise by about 1 billion baht over the medium term due to increased market activity.

Is Thailand Becoming a Digital Bond Pioneer with G-Token

Alongside tax incentives, Thailand is advancing the G-Token program, the first publicly offered tokenised government bond initiative.

Valued at 5 billion baht ($135 million), the G-Token represents a government-backed security issued under the Public Debt Management Act and guarantees principal and interest repayments.

The program aims to broaden access to government bonds, which traditionally required high minimum investments, by allowing retail investors to participate digitally.

Blockchain technology ensures transparency, reduces operational costs, and creates secondary market liquidity.

A consortium including XSpring Digital, SIX Network, Krungthai XSpring, and KuCoin Thailand will handle subscriptions, redemptions, and trading.

KuCoin, as the first international exchange to join, will provide technology support and facilitate global market access once regulatory approval is granted.

How Tax Incentives Are Shaping Thailand’s Crypto Strategy

Tax policy is at the centre of Thailand’s efforts to attract digital asset capital.

The cabinet approved measures in June 2025 exempting capital gains tax on individual crypto transactions through licensed operators and waiving value-added tax on digital asset transfers via the same channels.

These steps reduce transaction costs, improve transparency, and incentivise both local and international investors to operate within the regulated framework.

Why Crypto Payments Are Being Tested Gradually

Thailand is cautiously exploring crypto payments, particularly in tourism and retail.

Since 2022, cryptocurrencies cannot be used directly at merchants due to volatility and consumer protection concerns.

Instead, pilot programs allow tourists to purchase crypto via cards and gateways that instantly convert assets into Thai baht.

Source: Pexels

Merchants receive local currency without exposure to price swings, while travellers benefit from smoother transactions, creating a controlled environment for broader adoption.

Beyond Trading: Tokenisation and Web3 Expansion

Thailand’s ambitions extend beyond trading.

The country is exploring tokenisation of financial assets to shorten settlement times, enable fractional ownership, and expand investment opportunities.

In remittances, blockchain and stablecoins aim to cut fees and speed up cross-border transfers.

Web3 startups in gaming, ticketing, and tokenised loyalty programs are also emerging, taking advantage of programmable assets and lower operational costs.

Guardrails to Ensure Sustainable Growth

Despite opening doors to crypto, Thailand maintains strict oversight.

Source: Pexels

Licensed operators face rigorous KYC, AML, and market conduct rules, along with liquidity supervision.

The government’s incremental approach – opening markets gradually and monitoring effects – is designed to protect consumers and attract institutional investors while mitigating risks.

Could Thailand Become Southeast Asia’s Next Crypto Hub

Thailand’s combination of tax incentives, carefully managed payment pilots, and political support is creating a favourable environment for crypto adoption.

By balancing innovation with regulation, Bangkok is encouraging compliant businesses and investors to participate in a growing digital economy.

With each policy step, Thailand is building capacity for broader adoption and signalling its ambition to become a regional centre for blockchain and digital finance.